Stablecoin growth threatens banks, not national security: Delphi Digital

The proliferation of stablecoins poses a real threat to bank profitability rather than to national security, according to a recent report from Delphi Digital. The report noted that banks currently secure substantial margins by taking in public deposits, which offer an interest rate of around 0.39%, while U.S. Treasury yields stand at approximately 3.89%. In contrast, stablecoin issuers operate by holding assets like Treasuries as collateral and are gradually introducing models that pass these returns directly to their holders. If this structure becomes widespread, it could lead to a significant outflow of deposits from the banking sector, depriving banks of a cheap and reliable source of funding and potentially weakening their ability to offer low-interest loans. Ultimately, the report explained, the rise of stablecoins threatens the risk-free profit structure long enjoyed by traditional finance and could become a factor that reshapes capital flows in the financial market.